Question

Choose the correct option based on the following statements.

Statement 1: The size of an industry can be classified based on its annual turnover.

Statement 2: Industries can be classified into heavy and light based on size.

• A. Statement 1 is true and statement 2 is false.
• B. Statement 2 is true and statement 1 is false.
• C. Both the statements are true.
• D. Both the statements are false.

Answer 1

The correct option is A Statement 1 is true and statement 2 is false.

The size of an industry can be defined based on two main parameters. First is the investment, which means how much money has been put in to set up the industry and its plant and machinery or equipment. Second is the turnover, which means the value of goods or services sold during a particular period of time. Now, considering the effect of these two parameters, we can classify industries into micro-scale, small-scale, medium-scale, and large-scale.